After pushing through 1600 this morning, gold came up against resistance at 1602 before quickly falling back below 1600 again. The market continued to trade in a narrow range for the rest of the morning session in anticipation of Fed Chairman Ben Bernanke's testimony to Congress.
The market initially fell on the release of Bernanke's testimony, shaken by his confirmation that growth was "good" in the US, however gold found support at yesterday's low of 1584 and has since bounced back above 1590.
It is encouraging for the bulls that in recent trading sessions any price dips have quickly been bought back up as market participants clearly see value at these price levels. Barring any unforeseen events that smash the price of gold lower, we should see the market make steady upward progress towards 1630 from here, though we have to be mindful that confidence is still very fragile following last week's precipitous sell off.
Oil continues to struggle to move higher from the $93 area and the dollar continues its march higher, whilst silver is also relatively weak and acting more like an industrial metal than a store of value. The action in these "outside markets" is not helpful to gold, though it is interesting to note gold's relative strength in the face of these bearish headwinds.
Our open long position at 1588 is showing a small profit at present, we continue to target 1630 for this trade, with an outside chance of 1650-1660.
We have changed our position on the trade opened on 25 Feb 2013 (long Apr Gold @ 1588)
Change - move stop up to 1583 (basis Apr contract).
Gold has powered higher this afternoon, rallying $36 after initially selling off following Bernanke's testimony toCongress, reaching a high of 1620 before encountering resistance.
Whilst we believe this could be the start of a major new upleg, we would be happy to take profits at 1630, unless the market looks like it wants to go higher.
For now, we are moving our stop up close to break even as a protective measure to de-risk the trade.
===================================================
GOLD CURRENT TRADE
===================================================
GOLD CURRENT TRADE
===================================================
Long 1 April Mini Gold at 1588 on 25/02/2013
Stop lose at 1583
===================================================
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
